Can I Register a Company If I’m Not a Resident or Citizen?

Whether you want to gain immediate access to a particular market, secure your interests, bolster your credibility in the eyes of your consumers, avoid the legal red tape that could keep you from achieving your goals, or benefit from a more favourable taxation system, there are several reasons why you may want to look abroad for your company registration. This is the very definition of an international offshore company, and it is completely legal.

In many countries, what matters from a legal standpoint is not who opens a company but what the company is used for. Whether your company acts as a holding vehicle, allows you to own property or trademarks in the country in question, or serves as an entity to conduct business or trade, your activities determine your company’s legal status. So as long as your company registration is handled legally and your activities are conducted within the bounds of the country’s legal and tax framework, you are perfectly allowed to register a company as a foreign resident or citizen.

At GCM, we believe in using practices that have a supportive impact on our clients’ activities and that reflect positively on our industry. This is why our company formation services are so thorough. We conduct rigorous background checks, applying strict due diligence and Know Your Client processes to help you set up and run your business within the legal framework of your chosen jurisdiction.

Do I Need a Physical Office to Register My Company?

Company registration is a formality that can either be handled entirely remotely through a digital process or by enlisting the help of company formation services. In many cases, the ability to operate without establishing a physical presence in the jurisdiction is a deciding factor when setting up an offshore company, which is why several countries choose to make provisions for such cases. In other words, you do not need to own a house/office – or even an address – in the country where you decide to register your business entity.

So, how do offshore companies work, exactly? They are legal entities duly registered in an offshore jurisdiction, often as private companies limited by shares. They may conduct any business that doesn’t require a specific license and isn’t legally prohibited. An offshore company registration can allow you to trade goods or services internationally, make investments, hold intellectual properties, protect assets, and more. You can use it to operate globally and open bank accounts, subject to country-specific restrictions.

Some countries – like the Bahamas or Seychelles – distinguish entities operating within the domestic market from international (offshore) companies by granting the latter the status of “IBCs” or International Business Companies. These structures are typically permitted to conduct business from the country in question, but not within it. In other words, a Seychelles-based IBC can trade or offer services to companies based anywhere in the world, except in Seychelles.

What Happens After My Company Is Registered?

In most cases, offshore companies are liable to little to no tax and are exempt from corporate income tax, capital gains tax, and withholding taxes. At least, this is the case for purely offshore jurisdictions. In countries with a territorial tax system, incorporated companies must pay income tax unless they earn solely foreign-sourced profits, which may qualify for exemptions.

Note that your offshore company’s profits may also be taxed under controlled foreign company rules in effect in your country of residence. Other restrictions may also apply, as some countries also impose increased withholding tax on outgoing payments to offshore companies, for instance. In addition, company registration can require the payment of a fixed annual fee to renew your active status on the registry.

Registering an offshore company used to be a way to minimize reporting requirements considerably, or even do away with them altogether. Nowadays, however, accounting records and supporting documents must be kept and provided to the local regulatory authority upon request. Depending on the jurisdiction, you may also be asked to submit an annual financial return or a financial summary in the form of a balance sheet, though generally, no audit should be expected.

At GCM, we understand that choosing the right jurisdiction for your business can be daunting. That’s why we offer comprehensive company formation services to guide you through the decision-making process. Our goal is to ensure that you have all the necessary information at your disposal to make the best possible choice for your business project.

Do You Offer Support for Post-Registration Compliance?

GCM strives to provide a comprehensive range of services, going well beyond company registration. These include company registration and administration, reporting, auditing, accounting, and business planning, offering support to our clients throughout the process of structuring and developing a new offshore venture. We also offer bank account opening assistance, a company redomiciliation service, a company dissolution service, and assistance with vat and tax registration and filing across 45+ international jurisdictions.

GCM Corporate Services has been the world’s leading provider of company formation and business solutions since 2006. Our global footprint allows us to provide expert guidance and ensure that our commitment to full compliance with jurisdictional laws and regulations remains intact year after year.

From sole traders to expatriates, entrepreneurs, law firms, and high-net-worth individuals, each of our clients is assigned a dedicated account manager. This expert will be your point of contact during the entire year and assist you with what comes after your company registration. We are there to guide you through administrative matters, but our services don’t end there. Whether you need accounting & bookkeeping, auditing services, help with your company branding, or even virtual office services, GCM centralizes every practical aspect of running an offshore and onshore business, bringing you a cohesive and comfortable experience.

Navigating local regulations and tax requirements is a complex yet strategic task that requires expert knowledge and availability. Our team is at your side every step of the way, helping you identify the best opportunities and making sure due diligence is observed at every turn.